Maryland blocks Churchill Downs’ $85m Preakness rights acquisition
The State of Maryland has exercised its right of first refusal to acquire the intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes, displacing a proposed purchase by Churchill Downs Incorporated.
Maryland will match Churchill Downs Incorporated’s $85m offer for the intellectual property associated with the Preakness Stakes and Black-Eyed Susan Stakes.
Churchill Downs had agreed to acquire the trademarks and associated rights from 1/ST Maryland, with plans to license them back to the state for the continued staging of the races. Maryland’s decision to exercise its right of first refusal prevents that transaction from proceeding as originally planned.
The state already owns Pimlico Race Course, is overseeing its redevelopment and has agreed to purchase Laurel Park. Acquiring the racing brands will place the principal assets associated with the Preakness under state control.
The purchase will be financed through tax-exempt revenue bonds issued by the Maryland Economic Development Corporation. Debt repayments are expected to be supported by revenue from wagering, ticket sales and sponsorship rather than the state’s general fund.
Maryland Governor Wes Moore said the acquisition would secure the long-term future of the Preakness and allow the state to shape the development of its thoroughbred racing industry.
The decision represents a material reversal for Churchill Downs, which had presented the acquisition as an opportunity to add another major US racing brand to its portfolio alongside the Kentucky Derby.
